As a homeowner, you’ve probably received tons of offers trying to tempt you to restructure your finances utilizing unrealistic programs that do not fit in with your long-term financial goals. In fact, the Federal Reserve Board has just released a warning about a recent wave of deceptive promotional offers aimed at homeowners just like you.
Through direct mail advertising, consumers are being offered special “cash grant or equity disbursement” programs which claim to be linked to the Community Reinvestment Act (CRA) and, in some cases, even endorsed by the Federal Reserve.
The Federal Reserve Board cautions homeowners that “no such federal programs exist”. In fact, the Federal Reserve Board does not “endorse or sponsor” any mortgage programs, and the CRA does not “entitle individuals to any grants or loans”. Enacted in 1977, the CRA is a federal law designed to address unfair “redlining” practices in low-income neighborhoods, encouraging financial institutions to address the financial needs of the community as a whole.
This year, as millions of loans reset and payments increase, homeowners can expect more and more of these unrealistic and even bogus offers in the months to come.
Just remember that right now interest rates are the most favorable that they’ve been in months. Now is the time to review your home loan and consumer debt to determine how much money you are losing every month.
I will gladly perform a no-cost review of your finances and help you restructure your debt to potentially save you hundreds of dollars each month and thousands of dollars this year. As an experienced mortgage professional, I take special pride in providing sound financial advice to all of my clients.